There is a ready-made solution to this. It’s sometimes called the narrowing of the banking system, where instead of branching out through fractional reserves and lending and re-lending the money, you would go directly against the government as a depositor and the whole system would be narrowed to just depositors and the government.

No, the sandbox does depositors and borrowers. There is no special role for government. In fact no humans are allowed in pure cash at all, all interest charges are automatic, optimum and maximum entropy, meaning there will be no observably better deal without inside information.

As of 2008, you see that there’s been a barrier at zero. The government would have wished to pay lower interest rates, but the public can defeat a negative interest rate by just holding cash and putting it under the mattress. Cash yields zero. If you’re going to pay negative interest rates, everyone’s just going to hold cash. Not electronic money. With electronic money, they can just erase one percent of your balance every week, or whatever they feel they need to do.

No, with digital cash we can carry the stuff in our pockets using hardware wallet. But, in fact, the stastics tell use that negative earnings on depositys cas still surprise us.

If people have electronic accounts at the [central] bank, you can have regions targeted, demographics targeted. You could cut taxes to women, or to different ethnic groups, or to people over certain age, or whatever.

Governments can let central banks have this power today, and equally governments can prohibit it tomortrow.

Privacy, again, becomes a big issue. If the government has everybody’s bank account right in front of them, it’s impossible to hide.

No, in the new system, all citizens trade anonymously and continuously using trading bots. If government wants to track us down they have to wait until we buy a pizza then follow the pizza truck.

What about people who can’t use computers?

The cash card they hold will appear to be the most intelligent thing in the universe. We will live an an automatic flow controlled inventory system in which then collective trading pits know more about trade than any group of humans,past, present of future.